Microsoft, MySpace to share online music

Microsoft and MySpace are reportedly working on a music partnership that would allow Microsoft to include MySpace Music on MSN.

Representatives from both companies said ongoing negotiations are still in the early stages, but it's apparent the deal would give Microsoft a stronger presence in online music.  Although Microsoft currently has its own music service, MSN Music, it has significantly trailed competitors, while MySpace Music is near the top of the charts.

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ComScore research indicates MySpace Music trailed only AOL Music in unique visitors in April, with 27.4 million monthly visitors.  Microsoft's offering was in the 6th position, with just 7.4 million unique visitors.

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Furthermore, signing a deal with MySpace will allow Microsoft to tap into a larger audience without the need to work directly with record labels.  It's expected the software giant would also roll out MySpace Music directly into its Bing search engine, which is competing with Google, Yahoo and Ask.com.

MySpace is also constantly focusing on evolving its business, as it's possible MySpace and No. 1 social networking web site Facebook will collaborate in a deal.  If an agreement is made, it is rumored that MySpace music and videos will be shared through Facebook, a unique partnership as the two largest social networking sites work together.

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MSN relies heavily on revenue generated by entertainment; including movies, music and video content. Due to this, Microsoft can't just sit on the sidelines and let the industry pass it by.

Online music is expected to remain a hot business throughout 2010, so expect additional partnerships to be announced in the near future.

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